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Herbal Profiles #98
The Most Overlooked Strategy for THC Drink Brands

Welcome Note
Welcome back Gardeners!
David & I have been working hard on bringing you all a central location for the Podcast and a new website should be dropping soon. We will have educational resources, brand pages, and more. I will obviously keep you updated once it goes live!
The brand reviews over on the subreddit I moderate with Chris Fontes are still going and we are beginning to see more folks joining, we are closing in on 1,000 subscribers. So subscribe over on Reddit and follow along there!
The Free Spirits Podcast with David Gonzalez and myself is going strong and Episode 10 dropped on Monday with Benjamin Kennedy, Founder, Fable Libations.
If you could take the time to drop a review of the podcast or even just share it with a friend or two, it really does help us grow and continue to bring you this show.
I hope you enjoy this week’s newsletter
And as always, my email is open!
-Lars
Any comments or questions? Leave comment on this post or shoot me an email. Would love to hear from you!
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News Round Up
Gen Z and Millennials Prefer Cannabis Edibles and THC Drinks - New research shows younger consumers increasingly favor edibles and THC beverages over smoking cannabis. The trend reflects shifting preferences tied to convenience, discretion, and perceived health impacts.
War between intoxicating hemp and marijuana industries resumes in St. Louis - A legal and regulatory clash is unfolding in St. Louis between hemp-derived THC businesses and state-licensed marijuana operators. Tensions center around retail presence, safety standards, and taxation.
THC beverage producers booming in Wisconsin thanks to hemp loophole - Wisconsin hemp businesses are rapidly expanding THC beverage production under the 2018 Farm Bill. The state has seen increased consumer demand and a proliferation of infused products sold outside the medical cannabis system.
THC Beverages Are Coming: What Operators Need to Know - This article offers hospitality operators an overview of THC beverage trends, focusing on formulation, dosing, and regulatory considerations. It emphasizes staff training and compliance as critical to safe service.
Upstate Elevator Launches Ruby Red Ranch Water, A Clean, Craveable THC Spritz With Benefits - Upstate Elevator has introduced Ruby Red Ranch Water, a new THC-infused beverage featuring grapefruit, lime, and botanical adaptogens. The product is part of the brand’s expanding line of functional cannabis drinks.
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Why On-Premise Will Define the Future of THC Drinks
THC drinks have pretty firmly established themselves as the newest category and barring some crazy legal changes, they are here to stay. So what does that mean for the future of socializing, brand building, and more? Well, behind bars, on menus, and even on tap next to long-standing beer brands, cannabis beverages are entering the routines of real people in real spaces. And while much of the early energy around hemp-derived drinks has centered on RTDs and DTC launches, the more interesting story is happening off the e-commerce grid.
It’s happening in bars. It’s happening in restaurants. It’s happening in liquor stores.
Brightfield’s Q1 2025 data backs it up: consumers are increasingly buying THC drinks at bars, restaurants, and package stores. These are happening because the consumers are already shopping here. It’s normal to them, in these spaces, to be purchasing stuff that will inevitably alter their mind. The same places they’ve always turned to for social rituals and shared experiences.

Photo Cred: Spencer Ploessl
The Hospitality Advantage
On-premise accounts have always been the ultimate proving ground for beverage brands. The bar, the counter at your local cafe, the cooler at the fast casual restaurant, these have always been places for impulse purchases where people are already buying and are willing to give a product a try. It’s how brands have been built for generations. In THC, that importance is even more magnified.
Until recently, regulatory ambiguity kept cannabis beverages largely boxed into smoke shops, CBD stores, or direct shipping channels. But legal gray space is starting to clear in key states, and with it, a new distribution engine is emerging.
The on-premise environment offers what DTC can't: context.
When a customer sees the menu and a well crafted drink recipe they know that intention went into the recipe that it ended up on the menu. That establishment, they’re doing more than recommending a product. They’re translating a category. They’re giving a first-timer permission to sip slowly, mix creatively, and enjoy cannabis like they would a cocktail. That interaction builds comfort, curiosity, and most importantly, return behavior.
Spirits Invite Interaction
Listen, we all love RTDs. Run to the fridge, grab a can, crack it open and enjoy. What’s not to love? And while RTDs have done a lot of heavy lifting for the category. They’ve introduced format familiarity, lowered trial barriers, and scaled fast. But what they haven’t done is unlock the full potential of brand identity in a live environment.
That’s what spirits & shots offer.
Whether it’s a THC-infused aperitif, a shot-ready syrup, or a pourable base for mocktails, the format invites the bartender and customer to share a conversation, leading to better consumer awareness (who doesn’t love chatting with the bartender while they’re crafting a cocktail?). You get the opportunity to try various flavor combinations. And obviously, as a business owner you get to enjoy the increased margins from multiple drinks in 1 bottle.
I am extremely bullish on the spirits category as a whole.

The Dual Identity Comes to Life Here
THC drinks live in an interesting tension. Are they wellness tools or social intoxicants? Are they meant for sipping slowly on a solo hike or ordering in rounds with friends?
The answer is both.
And that dual identity plays out most clearly behind the bar.
Low-dose drinks (1–4mg) carry a wellness vibe—calm, clarity, and light control. Mid-dose drinks (5–9mg) invite more casual, social use. Higher-dose drinks (10mg+) skew recreational, celebratory, and indulgent.
These aren’t just usage tiers. They’re marketing lanes.
Bars, lounges, and restaurants are where those lanes intersect, and consumers get to choose their own path, with a guide. That’s why hospitality is such fertile ground for THC beverage brands: it’s the only environment where you can observe and influence the ritual in real time.
What the Data Actually Tells Us
The numbers are aligning with the movement:
43% of drinkers say they’re replacing alcohol with THC drinks
47% report drinking less alcohol overall since adoption
Most are replacing 3 out of every 5 alcohol occasions
Low-dose usage is growing fastest among high-income, educated, married consumers
Flavor, familiarity, and intentionality are driving the shift. People want to feel something—but on their own terms. They want fewer regrets, not less enjoyment.
That’s exactly where hospitality delivers. A bartender knows when to recommend a lighter touch, when to mix a signature mocktail, and when to suggest that second pour. That’s how cannabis becomes not just available, but approachable.
What This Means for Operators
If you’re building a THC beverage brand, hospitality isn’t optional. It’s not a nice-to-have. It’s not a marketing stunt.
It’s the infrastructure for long-term relevance.
On-premise builds repeat exposure through memory, not media. It’s where staff become educators, menus become billboards, and products become rituals.
The brands that win won’t just show up at Expo booths or dominate DTC Instagram ads. They’ll be the ones bartenders can talk about confidently. The ones drinkers can describe to their friends. The ones that live as both a product and an experience.
On-premise won’t supplement the category’s growth. It will shape its future.
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